Suppose an individual can work up to 21 hours per day at a wage of $15...

 

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Suppose an individual can work up to 21 hours per day at a wage of $15 per hour. Assume the marginal utility from leisure is given by 2.8c(03) and marginal utility from consumption is given by 2.4807/04) A. (Notes upload) In order of r a given worker to be a participant, what must be true about the wage? Write the mathematical condition that expresses this. Now (in terms of cand & rather than Y and e) write the two mathematical conditions which a participant's optimal choice must satisfy. B. (Notes upload) Give this worker's marginal rate of substitution between leisure and labour as a mathematical formula. For this utility function, write the reservation wage as a function in terms of non-labour income Y and time available T. If Y-$237 then W In this case will the individual choose to work? (Enter "1" for yes, "-1" for no. Enter "0" if the individual is indifferent.) If Y₁-$714 then Wg= this case will the individual choose to work? (Enter "1" for yes, "-1" for no. Enter "0" if the individual is indifferent.) In C. (Notes upload) Write the formula for the individual's potential income constraint if Y-$5548. This individual will choose to work hours of leisure. D. (Notes upload) Suppose instead Y-$29. Write the formula for this individual's potential income constraint. This individual will choose to work and spend $ on consumption. hours. So they will spend s hours. So they will have on consumption and have hours of leisure Suppose an individual can work up to 21 hours per day at a wage of $15 per hour. Assume the marginal utility from leisure is given by 2.8c(03) and marginal utility from consumption is given by 2.4807/04) A. (Notes upload) In order of r a given worker to be a participant, what must be true about the wage? Write the mathematical condition that expresses this. Now (in terms of cand & rather than Y and e) write the two mathematical conditions which a participant's optimal choice must satisfy. B. (Notes upload) Give this worker's marginal rate of substitution between leisure and labour as a mathematical formula. For this utility function, write the reservation wage as a function in terms of non-labour income Y and time available T. If Y-$237 then W In this case will the individual choose to work? (Enter "1" for yes, "-1" for no. Enter "0" if the individual is indifferent.) If Y₁-$714 then Wg= this case will the individual choose to work? (Enter "1" for yes, "-1" for no. Enter "0" if the individual is indifferent.) In C. (Notes upload) Write the formula for the individual's potential income constraint if Y-$5548. This individual will choose to work hours of leisure. D. (Notes upload) Suppose instead Y-$29. Write the formula for this individual's potential income constraint. This individual will choose to work and spend $ on consumption. hours. So they will spend s hours. So they will have on consumption and have hours of leisure

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